Interest Facts About Online Share Market Trading
While share trading in India has been around since the 1800s, it was only recently that the market became more accessible to people through the internet. There are several interesting facts about online share market trading in India that you may not know unless you’ve been trading shares online as long as I have! Here are some of the facts that make online share market trading even more enjoyable than it already is!
1. Bombay Stock Exchange, the Oldest Exchange in Asia
The Bombay Stock Exchange (BSE) was founded by Mr Premchand Roychand in 1854 and is the oldest stock exchange in Asia.
There are over 5000 companies listed on the BSE, making it the largest stock exchange in the world as per the number of companies listed.
2. Security and Exchange Board of India (SEBI)
SEBI is the body governing the Indian securities industry. It provides a forum for a free and fair market to trade securities and has been established with the following objectives:
(1) to protect investors,
(2) from ensuring orderly markets, and
(3) to promote fair competition among different sections of society.
SEBI was established in 1993 by an Act of Parliament called the SEBI India Act, 1992.
In 1992, the investment broker Harshad Mehta, convicted of securities fraud and manipulating the Indian Stock Market, led to the rise of the Security and Exchange Board of India and the Indian Government, giving the Board more power in 1995.
3. Total Number of Exchanges in India
India is not just NSE and BSE, but seven others as well. Hence, India has 9 Stock Exchanges and 2 Commodity Exchanges. The oldest is the Bombay Stock Exchange which was established in 1854. Following are the exchanges in India:
I. Bombay Stock Exchange (BSE)
ii. Calcutta Stock Exchange
iii. India International Exchange (India INX)
iv. Indian Commodity Exchange
v. Metropolitan Stock Exchange
vi. Multi Commodity Exchange of India
vii. National Commodity and Derivatives Exchange
viii. National Stock Exchange (NSE)
ix. NSE IFSC Ltd.
4. Bull and Bear Market
A bull market is defined as when the prices of stocks and other securities rise. It refers to the situation that happens when more buyers than sellers exist for an asset, which results in a price increase. According to mythology, bulls have horns pointing upwards, representing upward movement. Hence, the bull market refers to the climbing market.
A bear market is the opposite – it’s when prices are falling, so there are more sellers than buyers. In contrast to a bull, a bear has its palm facing the ground; hence the bear market resembles a falling stock market. As with any market, they both come and go depending on what people think of different markets at different times. For example, during the 2008-2009 financial crisis, the US economy was in recession, meaning that many investors lost faith and sold their assets to avoid further loss.
5. Trading can be Started with any Amount of Money
There is no minimum amount that you need to start investing with. You can invest any amount of money, and if you are not happy with your investment, you can close it anytime before the end of the day.
You can also use any of your credit cards to deposit money with these companies; there is no limit on investing with them. You need to decide the cash you want to invest and the shares you want to buy, then buy from them.
6. Indian Companies in Comparison to Karachi Stock Exchange (KSE)’
The Indian stock market has been considered one of the fastest-growing markets for years. Market capitalizations of Indian companies like Tata Consultancy Services (TCS), Reliance Industries Ltd (RIL), and HDFC surpass Karachi Stock Exchange’s combined capitalization.
7. The Rule of 72 in the Share Market
For beginners seeking investment in the share market, the first question is, how much time will the investment double in value?
A fixed interest rate is required to calculate the time needed to double capital using the simple rule of 72.
A return on investment can be approximated by dividing the rate of return by 72.
For example, suppose that a person invests Rs 3,00,000 at 8 per cent.
So 72/8 = 9, i.e., nine years will be taken for him to double the capital.
8. Total Investors in India
It is revealed that just 2.6% of the entire Indian population are stock market investors. Among India’s major cities, Mumbai is said to have the highest number of Demat accounts.
It is speculated that the statistics are low because only those with higher education and those who can afford it invest in stocks.
Apart from these two points, there are other reasons for not investing, such as lack of awareness and knowledge about supplies or lack of funds to invest, which could be linked back to income inequalities between different sectors and classes of society.
9. Most Expensive Share in India
MRF is the most expensive share on the Indian stock market, costing 89,904. Similarly, the Berkshire Hathaway share is the most expensive share in the world, at 4,78,675.55 USD.
10. You can Set Up a Demo Account to Practice
Investing in stocks can be a risky venture, but it can also be a profitable one. If you are not feeling brave enough to invest your hard-earned money into the stock market, then you need to set up a demo account first.
Demo accounts allow you to practice investing without risking your own money. You will have complete access to all functions that your live account would have, but instead of using real money, you will use what is called play money or fake money.
11. Nifty has grown more than 18 times since its inception
Nifty was started in 1995 and has grown more than 18 times. Its base price was 1000; currently, it is at 18,512. The index is traded at the NSE (National Stock Exchange of India) and tracks the 50 largest companies by market capitalisation.
Conclusion
India is one of the world’s leading economies. Online share markets have been an option for Indian investors since 1999, and even though it is still a relatively new concept to many of them, it is quickly gaining popularity. If you want to invest or trade stocks online, click on Housing Finance Company in India – Piramal Finance for more details and tips.